MAHB registers 7.6% net profit growth on the back of 34.2% growth in revenue in 9M13

31 October 2013

Sepang, 31 October 2013 - Malaysia Airports Holdings Berhad ("MAHB") recorded a revenue of RM2,978.1 million for the nine months ended 30 September 2013
("9M13"), representing a growth of 34.2% compared to RM2,219.8 million in the corresponding period in 2012 ("9M12"). Earnings before interest, tax,
depreciation and amortisation ("EBITDA") grew 5.9% to RM685.6 million, from RM647.3 million in 9M12. Profit after tax ("PAT") grew 7.6% to RM340.6 million
in 9M13, compared to RM316.5 million recorded in 9M12.

In line with the adoption of IC Interpretation 12: Service Concession Arrangements ("IC 12") effective 1 January 2012, MAHB recognises the construction
revenue and costs in accordance with FRS 111: Construction Contracts by reference to the stage of completion of the construction works of klia2 and Penang
International Airport, which are construction works on public sector infrastructure assets and services currently being undertaken by MAHB.In 9M13, MAHB recognised the construction revenue and costs in relation to the aforesaid projects amounting to RM1,198.7 million and
RM1,146.7 million respectively.

Excluding the effects of IC 12, revenue for 9M13 was RM1,779.4 million, which was 13.2% higher than the RM1,572.3 million registered in 9M12. PAT for
9M13 was RM288.7 million, which was 0.8% higher than the RM286.3 million registered in 9M12.

Airport Operations Segment

The increase in operating revenue was attributed to stronger results from the airport operations segment, driven by strong air travel demand especially
in the Asia Pacific region. MAHBrecorded passenger growth of 16.6% in 9M13, with a totalof 57.3 million passengers having passed through MAHB's 39
airports in Malaysia. Both international and domestic passenger movements recorded strong growth at 16.4% and 16.9% respectively.
The total passenger movements in KLIA increased by 18.1%, whereby both KLIA-MTB & LCCT recorded positive growth of 24.0% and 11.8% respectively. All
other airports recorded an aggregate growth in total passenger movements of 14.2%.
Total aircraft movements grew 12.5% to 540,340 aircrafts, with the international sector recording a higher growth of 12.4% compared to the domestic
sector, which recorded a 12.5% growth.

The revenue generated by airport operations segment improved by 14.7% to RM1,685.6 million, mainly driven by
aeronautical revenue which had improved by 18.6% on the back of strong increase in passenger and aircraft numbers. The increase in revenue was also
attributed to the implementation of the new landing and parking charges with the increase of 9% and 18% per annum respectively (compounded annually
effective 1 January 2012, 1 January 2013 and 1 January 2014).

The PAT growth was however dampened by higher total costs mainly attributed by higher user fee. Previously, the amount of user fee that has been
recognised in the income statement represents half of the total user fee payable to the Government of Malaysia, while the other half is to reduce the
amount due for the Balance Residual Payment arising from MAHB's restructuring exercise which was completed in February 2009. Upon the full settlement
of the Balance Residual Payment in April 2013, the user fee is now fully recognised in the income statement.

The
non-aeronautical revenue recorded a growth of 10.6% to RM798.9 million
on the back of improved performance in the retail and rental businesses. MAHB's own retail business grew 12.7%, driven by increase in passenger volume
and higher retail spending by passengers. Revenue from rental of space, advertising and other commercial segments grew 8.2% to RM362.2 million,
contributed by higher occupancy rate, higher rental royalty resulting from the higher sales at KLIA
and increased car park revenue due to higher number of passengers and airport visitors.

Non-airport Operations Segment

The non-airport operations segment recorded revenue of RM93.8 million in 9M13, representing a decrease of 8.2% from RM102.2 million recorded in
9M12mainly
due to lower revenue recorded in agriculture and horticulture segment as well as the hotel segment. The agriculture and horticulture segment registered
lower revenue of RM21.8 million in 9M13which was 41.2% lower than the RM37.0 million registered in 9M12due to lower price
attained for fresh fruit bunches coupled with a lower production volume for the period (2013: RM457/46,868MT vs. 2012: RM631/58,577MT). Similarly, the
hotel segment revenue dropped by 14.4% to RM47.9 million, mainly due to the temporary effect of hotel renovation project which was completed in April 2013.
However, the decrease was cushioned by contribution from the project, repair and maintenance segment which recorded a higher revenue of RM24.1 million in
9M13.

Industry Review

Globally, demand for air travel for both international and domestic segments have been encouraging with both segments registering 5.2% and 4.8%
year-on-year growth respectively. Asia Pacific emerged as the strongest performer among the three biggest regions apart from the European and North
American regions. This has been driven by the stabilisation of emerging market economies as well as the renewed confidence in Europe and North America.

MAHB continues to benefit from the entry of new airlines and expansion of local carriers. Malaysia Airines and AirAsia Group contributed strongly to
passenger growth while Malindo Air has registered a competitive load factor. Malaysia Airlines entry into oneworld in February 2013 has significantly
increased the market outreach and breadth of connectivity across continents and will continue to provide critical support for passenger growth. This is
evidenced by the new record achieved in August 2013 whereby the total passengers handled by MAHB surpassed the 7 million mark for the first time, being the
highest passenger movements achieved in a month.

Industry Outlook

Notwithstanding the recent marginal downward revision of 2013 global GDP forecast by International Monetary Fund, we remain optimistic with our 2013
passenger forecast. The seat capacity offering for 4Q13 remains buoyant as we approach the holiday season towards the end of the year. Seat capacity
expansion coupled with strong tourist arrivals pursuant to the Visit Malaysia Year 2014 campaign launched early this year will continue to fuel the growth
momentum. MAHB through its marketing efforts has been aggressively pursuing airlines globally through its various marketing initiatives and is optimistic
to achieve its Headline KPI target for 2013.